What Your Business Should and Shouldn't Be Buying in December

There are some great ways businesses can spend money in
December (particularly for tax purposes). Likewise, there are also things
businesses should never buy in December. If you're unaware of what those things
are in either category, we have a few of those things listed below.

DON'T Buy Mutual
Funds or Exchange-Traded Funds (ETFs)

We're not going to get into heavy detail with this because
we're marketing and IT experts, not financial experts. But what we do know from
business experience is that there are taxable year-end capital gains associated
with these funds. Buying them this late in the year means you can't benefit
from any these gains because they never had a chance to accrue. In other words,
you would be causing yourself unnecessary tax misery because your timing is
off. Do your research and speak with a financial expert for more information on
mutual funds and exchange-traded funds.

DON'T Buy New
Technology Products

If you're thinking about buying some new technology for your
business in December, hold off. Once you've missed the Black Friday deals,
you're unlikely to find deals like that again until January. This is because
many electronics are marked down to make room for newer electronics. This isn't
to say you won't find any deals in December. But, if you're really wanting the
best possible savings, wait until January. That is unless you would get a
bigger tax refund for buying it in December than the deal you would get on it
in January. Which brings us to our first "Do"…

DO Purchase
(Necessary and/or Budgeted For) Big-Ticket Items

If there are any last-minute purchases on big-ticket items
that your business needs or wants (and it fits within the budget), do it before
the end of the year for tax deduction purposes.

DO Consider
Charitable Donations

Charitable donations are tax deductible. Many businesses are
aware of this and take advantage of this. If your business hasn't, consider
doing so before year's end.

Knowing which purchases and spending habits will and won't
help your business out financially come January will put your business ahead
when the new fiscal year starts and save you from potential financial
headaches.

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